Oil windfall tax to yield Rs 40,000 crore net revenue
The new imposts on domestic crude and export of petrol, diesel and aviation turbine fuel is expected to garner around Rs 40,000 crore net additional revenue in FY23, offsetting nearly half the revenue foregone due to the recent excise duty cut on petrol and diesel, a senior government official told FE.
On July 1, the Centre imposed a new special additional excise duty of Rs 23,250/tonne on crude while new export taxes (special additional excise) on petrol, diesel and ATF are Rs 6/litre, Rs 13/litre and Rs 6/litre, respectively. The new taxes are aimed at cornering a pie of the “windfall profits” reaped by some of the domestic firms on the back of elevated global oil prices.
While there are various estimates by analysts, such as by Nomura India, which has said “we may see a positive impact on the Centre’s fiscal finances by Rs 1.1 trillion”, finance ministry officials were sceptical about such high estimates of additional revenues due to the new taxes.
